Free Quotes for US Retirement Annuity Insurance US Pension Quotes

The Fed raised interest rates by 75 points to a record high, how to save the hard-hit pensions?

Posted by

Last week, the Federal Reserve announced a 75 basis point interest rate hike, the largest in nearly 30 years, and it also completely disrupted the entire retirement wealth management market.

Shame on the 401K retirement accounts of American families

According to a research report released by the National Institute for Retirement Security (NIRS) at the end of May 2022, the tax deductions designed for various types of retirement accounts, such as 5(k) accounts and IRA individual retirement accounts,More than half did not benefit ordinary middle-class families.

401k-ira-roth

This title is "lost middle class" in the report*, documenting that current policies to encourage retirement savings do not provide adequate retirement security for middle-class families.

Especially in the market downturn that started this year, every hardworking American's retirement account has no protection at all.

The Life Tank©️To quote the famous 60(k)s quiz on the CBS TV show "401 Minutes":"What kind of retirement plan is it that will allow millions of people to lose 30-50% of their life savings when they are approaching retirement?"("What kind of retirement plan allows millions of people to lose 30-50 percent of their life savings just as they near retirement?"

(>>>Related reading:Column | Retirement in America: Is 401K Really Reliable?)

Insurance accounts that protect assets are more popular

Mark Lindblum, an investment manager from California, believes that in an era full of uncertainty,Fixed-income insurance products do not suffer losses as the market declines, like traditional securities products.

He further noted that due to the Fed's 75 basis point rate hike,Fixed Income InsuranceProduct sales should be more popular than they were before this rate hike.

The actual direction of the US market before seems to confirm this.

ByThe Life Tank©️Columns published this quarter - "What kind of insurance can protect our personal assets and pensions as the stock market plunges by $7 trillion?"The market data provided in the article pointed out that,Fixed Income Index Insurance Products, due to its nature of protecting funds from losses and specific growth features, shined in this volatile market environment of "continuous decline", and the total quarterly account opening premiums increased by 18% quarter-on-quarter to $170 billion.

(>>>Related reading:What kind of insurance can protect our personal assets and pensions as the stock market plunges by $7 trillion?)

risk-of-us-life-insurance-product

Securities Insurance

Direct investment in mutual funds and other investment productsSecurities insurance(VUL for short), experienced two completely different situations.

Since the returns of securities insurance accounts are directly linked to fund performance, some long-term holdingsVUL Insurance Account, began to face a drawdown in book cash value this year.

Especially for some investors who will only apply for such policy products in 2021,The extent of the losses on paper suggests it could be a rough year.

But on the other hand, market reports in the first quarter of 2022 showed that,Many insurance account investors firmly believe that the investment market may return to good performance in the long run.

Such households in the market made judgments based on such beliefs, and as a result, on the one hand, the securities market continued to decline; on the other hand, securities-based insurance sales increased.According to a report by ThinkAdvisor, the number of VUL policies sold increased by 28% year-on-year.

(>>>Related reading: Evaluation | Premiums doubled in price?Which new and old insurance product to choose?

Article summary

Millennials are bearing the brunt of the continued decline in the market, which has hit American households hard and saving for retirement.

Demand for defined-income retirement accounts, which provide deficit protection for funds, has grown significantly in this market environment.Some optimistic policyholders have shown a "buying dip" sentiment of "buying more as they fall."

And yesSeek out "Guarantee" type of coverageFamilies, in this environment, will not be affected too much.Conversely, interest rate hikes and ongoing and rising interest rates have helped drive up the rating of insurers and brought down the price of such protection-type insurance products.

some for lifetimeLong-term careCovered claims type (non-financial insurance) insurance products, the first major price cut in California since June. (End of full text)

*.The Missing Middle: How Tax Incentives for Retirement Savings Leave Middle-Class Families Behind, Dan Doonan, Tyler Bond, May 2022, NIRS

Your rating?Please click the star to rate
[Total votes: 1 The average score: 5]

More online lectures and new product columns

invalid email address
This site uses cookies, click the join button to indicate that you have agreed Privacy PolicyService Agreement
American Insurance Product Center Insurance Product Library